June 4, 2008: US Bank Makes Additional Commitments to CA

CRC recently negotiated a new set of commitments with U.S. Bank during its proposed acquisition of Mellon 1st Business Bank.
CRC raised concerns about the Bank's overdraft policies; level of philanthropic giving; role as trustee on pools of subprime mortgage backed securities; and support for technical assistance to small businesses.
U.S. Bank has agreed to:
1) provide notice to customers at the ATM machine if they are about to overdraw their accounts, and ask them if they still want to proceed with the transaction;
2) increase charitable contributions as a percentage of deposits (up to .025% of deposits in 5 years) so that the Bank's contributions will increase each year;
3) increase the percentage of its contributions (to 50% of total contributions) set aside for housing and economic development activities;
4) work with CRC to develop best practices for its trustee business that takes into account the needs of investors, but also looks at the needs of homeowners at risk of foreclosure, tenants at risk of eviction, and communities at risk of abandoned and blighted properties;
5) give $350,000 to nonprofit housing counseling agencies over the next 2 years; and
6) give $150,000 to support small business technical assistance providers.
CRC thanks U.S. Bank for these and prior commitments which greatly benefit California communities.

Click here to read the full commitment.